The Teyliom Group appealed to the regional financial market to raise FCFA 20 billion by ceding to FCTC TEYLIOM IMMO 7% 2021-2028 of real estate debts. This operation, launched on May 20 for a subscription period of one month, was closed early on June 1 with an oversubscription level of 145%.
A major player in real estate in French-speaking West Africa, the Teyliom Group aims to become a benchmark investor on the African continent, innovative and proactive.
With a view to financing the development of real estate projects in the West African region, particularly in Côte d’Ivoire and Senegal, the Teyliom Group has called on debt securitization as an alternative and innovative source of financing.
The operation was structured by ALC Structuration, and carried out in the form of a public offering authorized by the Regional Council for Public Savings and Financial Markets (CREPMF), under the visa number FCTC / 2021-01 / CO-01-2021 / NI- 01-2021.
The placement was led by the consortium made up of BRIDGE SECURITIES, a subsidiary of the Teyliom Group’s Finance Department, and NSIA FINANCE, leader of a union open to all UEMOA SGIs. The custodian of the FCTC is NSIA Banque Côte d’Ivoire. The FCTC TEYLIOM IMMO 7% 2021-2028 is managed by ALC Titrisation.
Bonds issued by the Mutual Fund for Securitization of Receivables at the nominal value of 10,000 FCFA will give rise to a quarterly payment of interest and a repayment of capital by constant quarterly amortization after one year of deferral.
Initially planned for a period of one month, the operation was a remarkable success and was crowned with an early closure after 10 days of marketing with a subscription level of 145% of the amount sought.
“We are delighted that such an operation launched by the Teyliom group for the first time on the market has been so successful underwriting. Funds raised
thanks to this transaction, it will continue the start already observed in the real estate sector and confirm our leadership in the sub-region as an African investor “underlined Mr. Yérim SOW, Chairman and CEO of the Teyliom Group.
“We are very satisfied with the success of this first operation on the regional financial market and thank all the investors for the confidence placed in our Group, and all the players in the regional financial market who have contributed to making this operation a success” said Jean-Charles BESSE, Chief Financial Officer of the Teyliom Group.
“Supporting Teyliom for its first fundraising in the WAEMU financial market is a source of pride for us. The success of the operation confirms us that securitization is becoming, in our space, a credible alternative to the range of existing financing offers, due to its tailor-made approach. This instrument is increasingly appreciated by investors keen to diversify their risk and the nature of the support “added Serge Tidiane DIOP, Managing Director of Africa Link Capital Structuring, arranger of the operation.
This operation is the first of the Teyliom Group’s 2021 issuance program aimed at raising around 70 billion FCFA in the coming months as part of the financing of its vast Real Estate Program in the West African sub-region in order to consolidate its position as market leader.
The effective date of the operation has been set for June 8, 2021. The bonds will be listed on the BRVM in the coming months.